KATHMANDU, Oct 15: The Securities Board of Nepal (SEBON) has endorsed a nine-point work plan to implement the recommendations of the government formed panel to strengthen the performance of Nepal’s secondary market.
According to SEBON, it has targeted to implement all the provisions by November end, while a few of them will come into effect shortly. The regulatory body will be allowing opening more than two demat accounts to the investors by October end. Likewise, the SEBON has planned to carry out margin trading through stock brokerage by mid-November.
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Following the market crash on the first trading day after the Gen Z movement of September 8-9, Finance Minister Rameshore Khanal formed a four-member task force to recommend systemic and procedural reforms aimed at restoring investor confidence. The panel was led by Rupesh KC, acting executive director of the Securities Board of Nepal (SEBON).
The panel has proposed over three dozen measures, including 15 short-term, 15 medium-term, and seven long-term recommendations. Key suggestions include annulling the threshold on loans against shares, extending deadlines for interest payments on margin loans, and reviewing capital gains tax provisions.
Last week, the Ministry of Finance (MoF) directed the line government agencies to implement recommendations of the task force.
